Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

Investors keep asking me about stablecoin, and how that can reduce FX fees; if you send money from USD to EUR, and the receiving end still requires to receive EUR in their bank, I can’t see any ways stablecoin can reduce fees - off ramping from stablecoin to recipient currency

Jack Zhang

Can someone ELI5 why Jack is wrong? I love stablecoins, but am probably more aligned with Jack than its boosters right now. Feels like the excitement around stables today smells a lot like emperor has no clothes

https://x.com/awxjack/status/1931239220204486879

FX fees = (1) spread from liquidity/volatility, (2) broker fees, (3) rollover fees.
Stables eliminate 2 & 3, and reduce 1 over time by boosting global liquidity + speed.
If you’re a global biz transacting in EUR & USD, cutting 1% in fees w/ stables is a no-brainer.